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I've also subsequently found out that if you use a package statement in an applet, then the html file needs to be in a different directory above applet in the directory tree or in another directory tree. In the latter case, the applet statement in the html file needs to have a codebase statement specifying where the applet is relative to the html file e.g. ../java/code.

though i do believe i pointed out that applet is now deprecated; the preferred way of placing a java applet on a page is using the object tag

further notes, on your solution; the codebase forms the effective equivalent of the classpath. if you are using a main class that is a member of a package, then it must be named in accordance with package naming rules.

for a complete explanation about classpathing, see my post to monkey_man in this thread: